SUSTAINABILITY IN NEW ZEALANDThe Challenge for Entrepreneurship and Innovation

Lorraine Warren, Professor of Innovation and Entrepreneurship, Massey University

Overview• I’m new here! New Zealand’s image?• Green and clean technologies?• Opportunities and challenges

• For entrepreneurship and innovation• For Business Model Innovation• Policy

Clean and green New Zealand?• Short history of human occupation (around 800 years –

Polynesian, then European settlers)• intentional and unintentional introduction of new species

and plants -> significant losses in diversity• Red and dead? http://

www.3news.co.nz/tvshows/campbelllive/a-bleak-future-for-new-zealands-waterways-2014052817#axzz3oEyKovZ4

OECD environmental performance review (2007) (Dairy?)• energy intensity is about equal to the OECD average• intensity of water, fertiliser, and pesticide use is low for

OECD countries. However, the review period saw 'significant increases, with consequent growth in pressures on the environment'

• New Zealand should strengthen national policy guidance (policy statements, national environmental standards)

• New Zealand should further integrate environmental concerns into economic and sectoral decisions, particularly by using economic instruments to internalise environmental costs of economic activities

• New Zealand should further develop international environmental cooperation.

An example - Wilding• http://www.wilding.co/

“Fledgling firm turns pine pest into perfume” – Southland Times

About Wilding & CoWilding pines are trees which have self-seeded and are causing serious environmental damage to the New Zealand ecosystem. Controlling their unrelenting spread is costing many millions of dollars—wasting what could otherwise be a valuable resource. At Wilding & Co we turn these pests into beautiful products by distilling them into the finest essential oil. Making scents of nature—that is what we do.

Sizing up the green economy: NZ's top 50NZ Herald, June 29, 2012

• Making money and helping the environment needn't be a contradiction!

Green 50 grew 15x faster than rest of economy..

• But what do we mean by green business?• Type 1 ***, focus on selling an

environment-enhancing product, service or technology

• Type 2 XXX, e.g. Air New Zealand, "sustainability players" , reducing waste and resource consumption

• Five groups importers, distributors and local manufacturers of green technology or services; converters of waste into useful products; recycling technology developers; developers and implementers of processes for environmental improvement; and advisers and consultants

Improvement areas

Sectors and growth

THE FUTURE OF ECO-INNOVATION: The Role of Business Models in Green Transformation

• OECD report, 2012• policies to revive industrial activity, job markets and

competitiveness, while simultaneously tackling global environmental challenges such as climate change and natural resources scarcity

• The rapid and wider diffusion of “ecoinnovation” can have a leveraging effect on environmental, as well as on economic and social improvements

• Bigger picture – World Business Council for Sustainable Development:

Factors influencing eco-innovation

Business model: Create and capture value

Barriers• Lack of market-pull forces due to the lack of (smart)

regulations, low levels of eco-taxes or consumer subsidies or lacking implementation of green public procurement

• Lack of capital for initial investment = too risky• Difficulty of new business models in fitting in the existing

systems as well as their need for supporting infrastructures and technological changes

• Regulatory barriers that may prevent firms from taking certain new approaches to ecoinnovation

• Lack of consumer readiness on which the adoption of eco-innovations heavily depends.

So what kind of value?• Economic

• New markets, new jobs, economic growth• Socio/cultural

• Better jobs, wider awareness, improved quality of life and change of attitudes and values.

• Environmental• Cleaner, greener, sustainable

Working through ideas?

Policies?• Sustainable Business Councilhttp://www.sbc.org.nz/

• Government http://www.business.govt.nz/laws-and-regulations/the-environment/sustainability

• Parliamentary commission• http://

www.pce.parliament.nz/publications/all-publications/creating-our-future-sustainable-development-for-new-zealand-3

• Green Party https://home.greens.org.nz/policysummary/sustainable-business-policy-summary

Thank you!• Any questions?